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IgorC [24]
3 years ago
5

Suppose the Federal Reserve engages in open-market operations. It sells $20 billion in U.S. securities. It also raises the reser

ve ratio. This causes excess reserves to _______, the money supply to ________, and the money multiplier to ________.
a. decrease; decrease; decrease
b. decrease; increase; increase
c. increase; increase; increase
d. increase; decrease; decrease
Business
1 answer:
klio [65]3 years ago
8 0

Answer: The correct answer is "a. decrease; decrease; decrease".

Explanation: Suppose the Federal Reserve engages in open-market operations. It sells $20 billion in U.S. securities. It also raises the reserve ratio. This causes excess reserves to <u>decrease</u>, the money supply to <u>decrease</u>, and the money multiplier to <u>decrease</u>.

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